From Texas, I mostly cover the energy industry and the tycoons who control it. I joined Forbes in 1999 and moved from New York to Houston in 2004. The subjects of my Forbes cover stories have included T. Boone Pickens, Harold Hamm, Aubrey McClendon, Michael Dell, Ross Perot, Exxon, Chevron, Saudi Aramco and more. Follow me on twitter @chrishelman.

Dear BP: Please Don't Make Us Go Through This Again

Just what you’ve been looking forward to: the opportunity to relive the horrible summer of 2010.

BPBP is set to go to trial against the federal government next week. The feds say they intend to prove that BP was grossly negligent in causing the Deepwater Horizon explosion and subsequent spill. BP says gross negligence is a high bar that it intends to keep prosecutors from clearing. The outcome will determine how many more billions the company ends up paying in fines for releasing millions of gallons of oil into the Gulf of Mexico.

And the proceedings will necessarily slog through all the gory details of the biggest oil spill in U.S. history, forcing those of us who follow the oil industry to suffer flashbacks of the horrific explosion, oil-soaked beaches and those endless hours keeping half an eye on the submarine video feed of oil gushing from the Macondo well.

Please don’t do this to us BP. Please settle this case with the feds and the states and everybody else so we don’t have to waste hundreds more hours and write dozens of articles recounting BP’s safety disasters and engineering screw ups.

BP’s tall, earnest, newish CEO Bob Dudley has spent the last two and a half years starting to rebuild BP. He’s largely completed the “shrink” part of his shrink-to-grow strategy, selling off $38 billion in assets including BP’s half of the Russian venture TNK-BP. He’s reorganized divisions, reemphasized safety. He’s moving the company forward.

Money, I guess. Because the reason can’t possibly be that BP somehow intends to clear its name.

In a statement, BP General Counsel Rupert Bondy says he’s been trying to reach a settlement with the DOJ, but has all but given up. “We have always been open to settlements on reasonable terms,” said Bondy. “Faced with demands that are excessive and not based on reality of the merits of the case, we are going to trial.”

It’s no surprise that the DOJ is playing hardball. The administration has nothing to lose. A core part of President Obama’s base believes that all oil companies are evil, not just the ones that spill crude into the oceans. If the president does end up approving the Keystone XL pipeline, at least he could say he was tough on BP.

“Gross negligence is a very high bar that BP believes cannot be met in this case,” Bondy said in the statement. “This was a tragic accident, resulting from multiple causes and involving multiple parties. We firmly believe we were not grossly negligent.”

Fine. BP wants to prove that it wasn’t grossly negligent. But really, for 99% of the population this is a distinction without a difference. No matter whether BP is found grossly negligent or just negligent, it won’t change anyone’s mind that the accident was BP’s fault.

Sure, the gap between “grossly” or “not grossly” is billions of dollars. As we’ve discussed ad nauseum over the past two years, if the judge in this case finds that BP was grossly negligent in causing the spill, the fines could go as high at $4,300 per barrel spilled. Even if we go with BP’s 3.2 million barrel figure rather than the 4.9 million barrels bandied about by Dept. of Justice prosecutors that’s upwards of $13 billion.

Bondy assumes that if he can achieve that goal, then the hit to BP’s coffers will be well less than the $5 billion widely considered as the low end of Clean Water Act penalties. Federal prosecutors, of course, say they’re ready to prove that BP was grossly negligent.

So what are the scenarios here? In the best possible world for BP, it convinces Judge Barbier that it was not grossly negligent. Then it can get out of this mess for something less than $5 billion.

In the worst scenario for BP it is found grossly negligent and is shown no lenience for all the billions it’s already spent on cleanup and restoration. It ends up paying another $20 billion.

But no matter what the outcome, BP loses. Its great nightmare gets rehashed day after day in full technicolor. Its engineering snafus are detailed, its engineers called to the stand to rationalize how they could have been so careless. We’ll see image after image of dead seabirds. Hear all over again the stories of sea turtles being burned alive. We’ll see interviews with the family of the 11 men killed on the Deepwater Horizon. We’ll be convinced by scientists that the Corexit oil dispersant sprayed into the plume of escaping oil has proven more toxic to the Gulf ecosystem that the oil itself.

Please BP, settle this case before trial. Pay your fines. Make it go away. Is the difference between $5 billion and whatever a reasonable settlement would be ($10 billion?) worth weeks of negative headlines and embarrassing revelations?

Don’t drag your brand, the industry, and the rest of us through your nightmare all over again.

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I just got paid $6784 working off my laptop this month. And if you think that’s cool, my divorced friend has twin toddlers and made over $9k her first month. It feels so good making so much money when other people have to work for so much less. This is what I do, Rich45.cøm

He is not stupid, just out of his depth on this particular topic, to understand all the ramifications. This is a chance for the industry to assess and re-assess who is operating in the US. NEXEN who was Canadian owned, now is Chinese under the state company CNOOC, they opertate in the GoM. This court case is a chance to wake up the industry and make some corrections.

You miss a crucial point here and that’s BP’s fiduciary duty to shareholders. Like you said, they can’t hope to fix their reputation, which also leads one to believe they can’t possibly damage it much more. As a result, the negative impact of a weeks long trial on its reputation would be much less costly than the increased $5-$10 Billion they would pay to settle versus “winning” the court case in showing they were not “Grossly Negligent”. If they were a private company they could stake reputation over billions. They’re not, for better or worse. But great, heartfelt, emotional, sappy article otherwise.

nathan, you’re absolutely right about their fiduciary duty, of course. and yet they settled criminal charges for $4 billion last fall, and they settled all those civil cases en masse for $10 billion last year. in this case it seems the only reason not to settle is because BP and DOJ are too far apart on their number. thanks for reading.

Not all of the cases have been settled. My husband was injured on the Deepwater Horizon. Most of the reports don’t tell the complete truth. There are still several of just the injured workers that are still seeking medical care, and they have been brushed aside. We have been living in hell for the past 3 years. Saying that all the civil cases has been settled is not the truth.

Far apart on the settlement number is what BP knows best. Remember Tony Hayward and company denied everything as they were not to blame. They went so far as to lie to congress. You’re surprised with the differential ? BP has the weekend to go to the yacht club, drink scotch and rethink the settlement before next Monday. It doesn’t matter though, Lousisanna wants them in court and that is a good thing I believe.

BP’s back is against the wall with the gulf states asking for 34 billion among them all. For BP to keep themselves from paying that amount and being more vunerable to a take over they have to go to court for a lesser fine. In any case, the state of Lousianna wants it to go to court – BP has no choice as it is out of their hands, unless they pay the 34 B. It’s not Feb 25th yet, they may just have some scotch at the yauht club, say let’s pay very close to 34 B and reduce their exposure in court so they can continue in the GoM. Who knows, but government regulators don’t want exposure either and as Obama said – “they were too close to BP”.

True Dat! We’ve been living in the hell for almost three years. There are a lot of us who are willing to live through a few more months to see justice served and the truth be revealed of what’s really happening on the Gulf Coast. The DOJ probably found some pretty hard evidence and just maybe they want justice done too. BTW, I believe the mass settlement was with Transocean, not BP. Sure some Plaintiffs may have a agreed individually to settle mostly due to all the chutes and ladders thrown their way the last couple years. All the dead dolphins and sea turtles could use some justice too. Just sayin’ and ventin’.

In the words of a very popular american, “it is the right thing to do”. It is just “common sense”. If they believe they are not grossly negligent even a big repugnant despised oil giant is entitled to litigate.

So the residents and the coastal businesses have been made whole as a result of the settlements. why is it that our government (which is we, the people) have to administer excessive punitive pain to the company and its shareholders, many of whom are middle class american folks trying to get by on their 401K, SEPS, and otherinvestments. Maybe collaterial damage is accepted, as in the Drone program!!!!GIMME A BREAK…CMON MAN!!!

The US investors of BP have a separate suit against BP management for fraud – for misleading investors to invest in a company that never changed their safety culture since the 2005 BP TX City explosion. Really a new form of a “ponzi scheme”, since dividends were suspended for along time by BP to investors.

Tee, Are you suggesting the dividends were declared but not paid? Historical dividend records indicate no disruption of dividend payments since 1985 and, as a matter of fact, were increased during the time you reference.

If BP and DOJ settle, we’ll never know if killing 11 people is, or not, gross negligence. Which would be a pity for all future partners in all future JVs, who will have to pay for all consequences of reckless behaviour, or just plain cost-cutting at its worst, of their operator. This case is THE one to pursue for the sake of clarity. Sorry if it disturbs your summer.

This is “simply” not about the money and you need to get closer to the case and industry to realize this. Gross versus just negligent is big – for change.

If change is to happen in the industry then the “real” change is banning BP from the GoM and forcing a sale of those assets to a more responsible Oil & Gas company with a “safety” track record. This is ALL about SAFETY or it SHOULD be, so it doesn’t happen again and if it does, then a company acting like the “Three Stooges” is not at the helm trying to resolve it.

The fines are one thing, but for BP with a poor safety history starting with the TX City refinery explosion in 2005 killing 11 + injuring 170, this case is a far bigger STORY that needs to go to trial and “Gross Negligence” maybe the key to fixing such future screw-ups and really for the US government to decide if they want to gamble with BP operating in the US.

I wonder what Obama’s legacy would look like if a repeat offender such as BP, continues to operate in the GoM and this happens again on his watch ? BP is not worthy to be an “Operator” and this is the main concern in the industry. Please see the definition of “Operator” in the industry which is to be the sole party with staff, procedures and the “know-how” to safely extract hydrocarbons.

The industry will NOT change if you can simply buy your way out of screw-ups or if you are a small O&G company, then you declare bankruptcy, leaving the US government to scramble to clean up another mess.

Ban BP from being an OPERATOR in the GoM and possibly all of the US – this will wake up the industry and change things for the better.

What if BP was another company owned by the country of ABC operating in the US ? Would you not question whether ABC should continue to operate in the US ? I would think so, if you are doing the right thing to avoid future disasters.

We need to know how negligent BP was to make such decisions. The US needs to take BP to court. Trust me, BP doesn’t want to go as the “cat will be out of the bag” once and for all for those not close to the business. Don’t think BP is in control of settling out of court – because they’re not.

People need to read “Run to Failure” by Abrahm Lustgarten to understand what BP is ALL about. Obama likely has and hopefully Judge Barbier.

Also, there is a reason why Shell has looked again at taking over BP last December 2012, since timing is everything !

This is “simply” not about the money and you need to get closer to the case and industry to realize this. Gross versus just negligent is big – for change.

If change is to happen in the industry then the “real” change is banning BP from the GoM and forcing a sale of those assets to a more responsible Oil & Gas company with a “safety” track record. This is ALL about SAFETY or it SHOULD be, so it doesn’t happen again and if it does, then a company acting like the “Three Stooges” is not at the helm trying to resolve it.

The fines are one thing, but for BP with a poor safety history starting with the TX City refinery explosion in 2005 killing 11 + injuring 170, this case is a far bigger STORY that needs to go to trial and “Gross Negligence” maybe the key to fixing such future screw-ups and really for the US government to decide if they want to gamble with BP operating in the US.

I wonder what Obama’s legacy would look like if a repeat offender such as BP, continues to operate in the GoM and this happens again on his watch ? BP is not worthy to be an “Operator” and this is the main concern in the industry. Please see the definition of “Operator” in the industry which is to be the sole party with staff, procedures and the “know-how” to safely extract hydrocarbons.

The industry will NOT change if you can simply buy your way out of screw-ups or if you are a small O&G company, then you declare bankruptcy, leaving the US government to scramble to clean up another mess.

Ban BP from being an OPERATOR in the GoM and possibly all of the US – this will wake up the industry and change things for the better.

What if BP was another company owned by the country of ABC operating in the US ? Would you not question whether ABC should continue to operate in the US ? I would think so, if you are doing the right thing to avoid future disasters.

We need to know how negligent BP was to make such decisions. The US needs to take BP to court. Trust me, BP doesn’t want to go as the “cat will be out of the bag” once and for all for those not close to the business. Don’t think BP is in control of settling out of court – because they’re not.

People need to read “Run to Failure” by Abrahm Lustgarten to understand what BP is ALL about. Obama likely has and hopefully Judge Barbier.

Also, there is a reason why Shell has looked again at taking over BP last December 2012, since timing is everything !

Mr. Helman, I’m sorry that you’re agonizing over having to relive the devastating experience of the worst oil disaster in our country’s history. It must be so hard for you to think of new things to write about this ho-hum case.

On the other hand, a lot of us who have lived through this experience, from the families of those negligently killed to the fisherfolk who have yet to be made whole to the activists who continue to see and document the ongoing devastation, feel otherwise. If all the dead dolphins and sea turtles could talk, I’m sure they’d agree, as would the shrimp who continue to show up with anomalies such as lesions and tumors.

You’re undoubtedly aware that there’s still oil in our marshes and tar mats that get uncovered with every strong south wind. Come on down, we’ll show all of it to you … plus some.

Until then, please know that we’re glad to have our day in court. Yes, the truth hurts, but it’s especially painful when it goes unvalidated.

The poster above mentioned the sea turtles. When the studies were done on the turtles that had been found, and this includes the ones that were oiled, none of them died from oil or dispersant products. They did not show any effects of any toxic chemical. All them had drowned with stomachs full of fast moving prey. It was concluded that they had drowned in fishing/shrimping nets.

It seems that many of the fishermen decided to try to get maximums harvests before areas were closed, so they disabled their TEDs and used fishing methods that were result in bigger catches, but also turtle death.

The whole issue of seafood with tumors and lesions has been greatly exaggerated. One researcher reported some, when others tried to find them, they found normal fish. I am sure you have seen the pictures, many of those pictures are not of seafood from the Gulf. They have even included a picture from a site on diseases of salt water aquarium shrimp. Others were of Asian sea food.

You’re a pathetic excuse for a journalist. Grow a pair or step aside and let someone else report the truth. “oh don’t make me go through reporting this all over again”….WAAAAAHHHH!!! I’m from Louisiana and see the devastation that is still ONGOING. It’s because of reporters like you who white wash the truth that American citizens are as dumbed down as they are. So much for the 4th branch of government adhering to their ethics…welcome to 1984.

Mr Helman I think you have no clue of what the ordinary person on the Upper Gulf impacted by the BP disaster has endured, and are still going through. You are either a 1% industry snake and out of touch with the real world, or just a moron. We have been enduring the reality for almost 3 yrs, and BP does nothing but lie. Whining like a wimp about BP’S trial is just to bad!! The Citizens of the Gulf Coast want Full Trial, Full Disclosure of all evidence, and that’s what we are going to get like it or not. No backroom shady deals are going to fly on this buddy boy!! No Justice No Peace for BP

Chris, your comments are well taken but BP looks at this as a war of attrition. I was lead counsel on the BP Texas City explosion and serve on various workgroups in the BP oil spill case. BP has numerous incestuous relationships with our government and any “deal” will likely involve other considerations, like lifting the EPA debarment, renewed drilling rights to Government owned natural resources, tax breaks and “understandings” of a stand-down on further potential indictments. What is tragic is that most of the real victims of the spill have still not been compensated for their personal or financial losses. I know. Our firm represents thousands of them.

Brent – aside from any monetary settlement between DOJ and BP, if BP is found “Grossly Negligent” in this case, will that designation have the ability to completely revoke BP’s licence to Operate in the Gulf of Mexico and possibly in the US ?

As you well know, in 2005 BP proved they cannot operate a Refinery after TX City exploded. In 2006 BP proved they cannot operate a Pipeline after the Alaska oil spill at the North Slope. In 2010 BP proved they cannot operate a drill rig in deep water. The operating GoM BP Atlantis platform is in question on how it was built without engineered drawings.

Last week, BP boldly stated that, “they now lead the way in safety”. http://edition.cnn.com/2013/02/13/business/bp-claims-safety-leadership

Anyone in the industry and certainly yourself with first hand knowledge of BP and their culture knows, you can’t change safety or corporate culture overnight and they haven’t since 2005 when TX City happened.

Paying fines is one thing, temporay lease bans another, but Operatorship needs to be questioned, challenged and ultimately revoked in order to make the moral step changes needed in the industry.